PBBM to meet DBCC on fuel excise tax cut proposals

By Darryl John Esguerra, Philippine News Agency

(PNA photo by Yancy Lim)

MANILA – President Ferdinand R. Marcos Jr. is set to meet with the Development Budget Coordination Committee (DBCC) on Tuesday to tackle recommendations on the possible suspension or reduction of excise taxes on petroleum products, Malacañang said Monday.

Palace Press Officer Claire Castro said the DBCC proposal will be subject to the President’s approval, as the government weighs measures to cushion the impact of rising global oil prices.

“Let us keep in mind that taxes are the lifeblood of the government, so we need to balance everything,” Castro said in a press briefing.

The meeting comes as the Philippines grapples with surging fuel costs triggered by tensions in the Middle East, particularly disruptions in the Strait of Hormuz, a critical chokepoint that handles about 20 percent of global oil supply.

On March 25, Marcos signed Republic Act No. 12316, granting the President authority to suspend or reduce excise taxes on petroleum products when Dubai crude breaches USD80 per barrel.

The DBCC’s recommendations are expected to outline fiscal scenarios and potential trade-offs, as the government balances revenue needs with the urgency of providing relief to consumers and transport sectors affected by the oil price shock.

The proposed tax adjustment forms part of the administration’s broader response under its energy emergency framework, which includes fuel subsidies, transport support, and supply diversification efforts.